Singapore Extends Contract to Host Formula One Race Until 2017

By Shamim Adam -
Sep 22, 2012

Singapore extended its contract to
host a Formula One race for five years till 2017, providing a
continued boost to the economy from visitor arrivals and tourism
receipts.

The agreement to renew the contract was reached yesterday,
said S. Iswaran, Singapore’s second trade minister, who oversees
the tourism industry. The Singapore Grand Prix has attracted
more than 150,000 international visitors over the past four
years and generated about S$140 million ($114 million) to S$150
million in tourism revenue annually, with benefits to the
economy expected to remain “at least at this level” for the
extended period, he said.

“F-1 has been good for Singapore,” Iswaran said as the
city stages the night race for the fifth time today.
“Negotiations have taken some time because all parties had
specific objectives.”

Singapore is seeking to encourage tourists to spend more by
offering marquee events such as Formula One and other
attractions as a faltering global recovery threatens to curtail
growth in visitor arrivals. Tourism spending is expected to
increase as much as 8 percent to S$24 billion this year,
according to government estimates.

McLaren driver Lewis Hamilton holds pole position for
today’s race at the Marina Bay street circuit with Pastor
Maldonado of Williams second and two-time defending world
champion Sebastian Vettel of Red Bull starting third. The race
begins at 8 p.m. in Singapore.

Co-Funding

The grand prix costs S$150 million to organize, with the
Singapore government co-funding 60 percent, Iswaran said.

“We expect to achieve a further reduction in the net cost
to government through a combination of factors including
optimization of infrastructure, operational efficiencies in race
organization and revised terms with the race promoter and
Formula One administration,” he said.

Singapore forecast arrivals to rise to 17 million and
tourism spending to S$30 billion by 2015. The opening of two
casino resorts that include a downtown convention center and a
Universal Studios theme park spurred a 13 percent increase in
visitors last year after a 20 percent climb in 2010. The country
expects tourist arrivals to rise as much as 9.8 percent to 14.5
million in 2012.